Just as change is constant in most parts of our lives so it is with tax law.
On top of many of the publicised changes to tax rates, bright-line property tests and interest deductibility the government has also moved legislation through to enable Inland Revenue to collect significantly more information on New Zealand trusts.
Attached below is the publicity promulgated by IRD which gives an overview of the additional information they will be collecting from the 2022 tax year onwards. For many of you we will already have this information and a full set of financial statements so it may just require the gaps to be filled in than further information required.
For those who may have historically just filed a tax return and not completed full financial statements this will no longer be acceptable. Full financial statements will now be required annually for all trusts.
We will contact clients individually as we progress the 2022 year to discuss what further information we may require.
Finally, as this will be a change for all trusts and requires additional time there will be a corresponding increase in our costs to assemble and report the additional information required.
Please do not hesitate to contact us if you have any questions regarding these changes.